General Dynamics IT awarded $50.9M BPA Call for custom computer programming services by USAID

Contract Overview

Contract Amount: $50,933,302 ($50.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Agency for International Development

Start Date: 2010-11-19

End Date: 2014-07-27

Contract Duration: 1,346 days

Daily Burn Rate: $37.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: REQUISITION TO START THE NEW BPA CALL

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $50.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: REQUISITION TO START THE NEW BPA CALL Key points: 1. Contract awarded via a BPA Call, indicating a pre-established agreement for services. 2. The contract type is Time and Materials, which can pose cost control challenges. 3. Services are categorized under Custom Computer Programming, a common IT support function. 4. The contract duration of over three years suggests a significant, ongoing need. 5. The award was not competed under SAP, raising questions about the procurement process. 6. The contractor, General Dynamics Information Technology, is a large, established IT provider.

Value Assessment

Rating: fair

The contract value of $50.9 million over approximately three years for custom computer programming services appears to be within a reasonable range for a large federal IT contract. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is difficult. The Time and Materials pricing structure, while flexible, can lead to higher costs if not managed closely compared to fixed-price contracts. Benchmarking against similar custom programming contracts awarded by USAID or other agencies would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a BPA Call, which implies it was likely competed among pre-qualified vendors under an existing Basic Ordering Agreement (BOA) or similar framework. However, the notation 'NOT COMPETED UNDER SAP' suggests that the specific call order may not have undergone the full competitive process typically associated with Simplified Acquisition Procedures. The limited competition aspect, if it means only a few vendors were solicited or if the BOA itself had limited participants, could impact price discovery and potentially lead to less favorable pricing for the government.

Taxpayer Impact: Limited competition can result in higher prices for taxpayers as it reduces the pressure on vendors to offer their most competitive rates. This can also mean less innovation and fewer choices for the government.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which receives custom computer programming services to support its mission. These services likely contribute to the development, maintenance, or enhancement of IT systems crucial for USAID's global operations. The geographic impact is primarily within the United States, where the contractor is based, but the services support USAID's international programs. The contract supports a segment of the IT workforce, likely involving software developers, programmers, and related technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not closely monitored.
Limited competition may have resulted in a higher-than-market price.
Lack of clarity on the specific competitive process for this BPA Call.
Contract duration of over three years could lead to vendor lock-in if not managed proactively.

Positive Signals

Award to a large, experienced IT contractor (General Dynamics Information Technology) suggests a higher likelihood of successful service delivery.
The use of a BPA Call indicates a pre-existing relationship and potentially streamlined procurement for ongoing needs.
The contract addresses a clear need for custom computer programming services within USAID.

Sector Analysis

This contract falls within the Information Technology sector, specifically Custom Computer Programming Services. This is a significant and growing segment of federal spending, driven by the need for agencies to modernize legacy systems, develop new applications, and maintain complex IT infrastructures. The market for these services is highly competitive, with numerous large and small businesses vying for federal contracts. The value of this contract, at over $50 million, places it in the mid-to-large tier for IT service contracts. Comparable spending benchmarks would typically look at the average cost per hour for similar programming roles or the total contract value for projects of similar scope and duration within federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Information Technology is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without this information, it's difficult to assess the impact on the small business ecosystem. Large prime contractors are often required to meet small business subcontracting goals, but the extent to which this occurs on BPA Calls can vary. If subcontracting opportunities are not actively pursued, it could limit the participation of small businesses in supporting this federal requirement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Time and Materials contract, rigorous oversight of labor hours, rates, and direct costs is crucial to ensure cost control and prevent overruns. USAID's contracting officers and program managers would be responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. Transparency would be enhanced through regular reporting requirements and potentially through public contract databases. The Inspector General's office for USAID would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Professional Services
Custom Software Development
IT Support Services
Basic Ordering Agreements (BOAs)
Agency for International Development IT Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition raises concerns about price fairness.
Lack of transparency regarding the specific competitive process for this BPA Call.
Scope of work not clearly defined in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $50.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. REQUISITION TO START THE NEW BPA CALL

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $50.9 million.

What is the period of performance?

Start: 2010-11-19. End: 2014-07-27.

What is the specific scope of 'Custom Computer Programming Services' under this BPA Call?

The provided data does not detail the specific scope of 'Custom Computer Programming Services.' This category typically encompasses a wide range of activities, including software design, development, coding, testing, and implementation of new applications or modifications to existing ones. For USAID, these services could range from developing internal management systems, supporting data analysis platforms, enhancing cybersecurity measures, or creating tools for program management and reporting in their international development efforts. A thorough understanding of the Statement of Work (SOW) associated with this BPA Call would be necessary to define the precise services rendered and their intended impact on USAID's operations.

How does the Time and Materials (T&M) pricing structure compare to fixed-price options for similar services?

Time and Materials (T&M) contracts offer flexibility, allowing the government to pay for the actual labor hours and materials used, plus a fixed fee or labor rate. This is often suitable for projects where the scope is not well-defined at the outset or is expected to change. However, T&M contracts carry a higher risk of cost overruns for the government because the final cost is not predetermined. Fixed-price contracts, conversely, establish a set price for a defined scope of work, shifting the cost risk to the contractor and providing greater cost certainty for the government. For custom programming, if the requirements are stable and well-understood, a fixed-price contract might offer better value and predictability. USAID's choice of T&M suggests either a need for flexibility or potentially a less defined initial scope for these programming services.

What are the potential risks associated with a 'NOT COMPETED UNDER SAP' award for a BPA Call of this magnitude?

The notation 'NOT COMPETED UNDER SAP' for a $50.9 million BPA Call raises concerns about the level of competition and potential price fairness. Simplified Acquisition Procedures (SAP) are designed for purchases below a certain threshold (currently $250,000) and are intended to streamline the process while still encouraging competition. If this BPA Call exceeded SAP thresholds but was still not competed broadly, it suggests it might have been awarded under other, potentially less competitive, procurement pathways. This could mean fewer vendors were solicited, or it was awarded based on pre-existing contract vehicles (like a BOA) where competition might have already been limited. The risk is that the government may not have received the best possible pricing or the most innovative solutions due to a lack of robust competition.

What is General Dynamics Information Technology's track record with USAID or similar federal agencies for IT services?

General Dynamics Information Technology (GDIT) is a major federal IT contractor with a long history of providing a wide range of services to various government agencies, including USAID. Their track record typically includes large-scale IT modernization, system integration, cybersecurity, and cloud services. While specific performance metrics for this particular BPA Call are not detailed, GDIT generally possesses the resources and experience to handle complex federal IT requirements. Past performance reviews and contract award data from sources like the Federal Procurement Data System (FPDS) would offer more granular insights into their specific performance history with USAID and similar entities, including any past issues or commendations.

How does this $50.9 million contract compare to historical spending on custom computer programming by USAID?

Without access to USAID's historical spending data specifically broken down by contract type and service category like 'Custom Computer Programming,' a direct comparison is challenging. However, $50.9 million represents a substantial investment. USAID, as a large federal agency with global operations, requires significant IT support. Annual IT spending for agencies of USAID's size can range from tens to hundreds of millions of dollars. This particular contract, spanning over three years, suggests a significant, ongoing requirement for specialized programming expertise. It is plausible that USAID has awarded multiple contracts of similar or larger value for IT services over the years to meet its diverse technological needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 15000 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $425,598,559

Exercised Options: $160,405,888

Current Obligation: $50,933,302

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AIDIRME000600015

IDV Type: BPA

Timeline